Your investment options are stocks of either Green Energy or…

Your investment options are stocks of either Green Energy or Oil Energy or a combination of those two. The following are possibilities of what may happen to these stocks depending on the political scenario. Possible Outcomes Probability Green’s StockReturns (%) Oil’s StockReturns (%) DEM 0.40 15 5 REP 0.50 5 15 IND 0.10 1 8   What is the standard deviation of returns of a portfolio with 50% investment in Green and 50% in Oil?

Capital Budgeting The Recycled Paper Inc. corporation is con…

Capital Budgeting The Recycled Paper Inc. corporation is considering a project with the following cash flows. Year Cash Flow 0 ($76,000) 1 $18,500 2 $18,500 3 $18,500 4 $18,500 5 $12,500 6 $12,500 7 $12,500 8 $12,500 Refer to the Capital Budgeting narrative. What is the IRR of the proposed project?

An economist is interested in studying the incomes of consum…

An economist is interested in studying the incomes of consumers in a particular region. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an average income of $15,000. What is the upper end point in a 99% confidence interval for the average income?